Postal Rate Commission Submitted 9/24/01 1:10 pm USPS-T-2 BEFORE THE POSTAL RATE COMMISSION WASHINGTON, D.C. 20268-0001 ---------------------------------------------------------: Postal Rate and Fee Changes, 2001 : : ---------------------------------------------------------: DIRECT TESTIMONY OF JENNIFER J. XIE ON BEHALF OF THE UNITED STATES POSTAL SERVICE Docket No. R2001-1 TABLE OF CONTENTS TABLE OF CONTENTS ................................................................................................... i AUTOBIOGRAPHICAL SKETCH .................................................................................... 1 PURPOSE AND SCOPE................................................................................................. 2 I. HIGHWAY ................................................................................................................ 3 II. FREIGHT RAIL ........................................................................................................ 6 III. PASSENGER RAIL (AMTRAK)................................................................................ 8 IV. COMMERCIAL AIR................................................................................................ 11 V. NETWORK AIR...................................................................................................... 14 APPENDIX .................................................................................................................... 17 Table 1. BY00 Inter-BMC Highway Costs and Confidence Intervals ......................... 18 Table 2. BY00 Intra-BMC Highway Costs and Confidence Intervals ......................... 19 Table 3. BY00 Inter-SCF Highway Costs and Confidence Intervals .......................... 20 Table 4. BY00 Intra-SCF Highway Costs and Confidence Intervals .......................... 21 Table 5. BY00 Freight Rail Costs and Confidence Intervals ...................................... 22 Table 6. BY00 Passenger Rail (Amtrak) Costs and Confidence Intervals ................. 23 Table 7. BY00 Amtrak - Roadrailer Distribution Key and Costs................................. 24 Table 8. BY00 Commercial Air Costs and Confidence Intervals................................ 25 Table 9. BY00 Eagle Network Costs and Confidence Intervals ................................. 26 Table 10. BY00 Western Network Costs and Confidence Intervals........................... 27 i 1 1 2 3 DIRECT TESTIMONY OF JENNIFER J. XIE 4 5 AUTOBIOGRAPHICAL SKETCH 6 My name is Jennifer J. Xie. I am a Mathematical Statistician in Cost 7 Systems, Finance. Since joining the Postal Service in 1995, I have worked on 8 statistical design and estimation issues for the Transportation Cost System, 9 Origin-Destination Information System, the Revenue, Pieces and Weight System, 10 and the System for International Revenue and Volume Outbound. I have served 11 as project manager for the Transportation Cost System since August 1997. 12 Prior to joining the Postal Service, I was employed as a senior Load 13 Research Analyst by the Potomac Electric Power Company (PEPCO). My 14 primary responsibility at PEPCO was to conduct statistical analyses using 15 customer billing and survey information to quantify energy reductions attributable 16 to various conservation programs. I also provided technical support in several 17 PEPCO rate case proceedings. 18 I received a B.S. in Electrical Engineering from Jiangsu Institute of 19 Technology, China, in 1982 and a M.S. in System Engineering from Hohai 20 University, China, in 1987. I earned a Ph.D. in Operations Research and Applied 21 Statistics from George Mason University in 1992. I am a member of the 22 American Statistical Association and the Washington Statistical Society. 2 1 2 PURPOSE AND SCOPE 3 The purpose of my testimony is to describe the Transportation Cost 4 System (TRACS), which is a statistical information system used to distribute 5 base year (BY) purchased transportation costs to mail categories. TRACS is 6 composed of five distinct subsystems: Highway, Freight Rail, Passenger Rail 7 (Amtrak), Commercial Air and Network Air. All five subsystems are continuous, 8 ongoing survey systems designed to collect data from the different transportation 9 modes. Each subsystem employs its own survey design and estimation 10 procedures. My testimony covers the general design for each subsystem, the 11 types of estimates each produces, and tables of major estimates and confidence 12 limits. 13 3 1 I. HIGHWAY 2 The TRACS-Highway subsystem produces separate distribution keys for 3 four types of purchased highway contracts: Inter-BMC1, Intra-BMC, Inter-SCF2, 4 and Intra-SCF. The cost for each contract type is composed of one or more 5 accounts. The universe under study is all mail moved on contracts whose costs 6 accrue to these highway accounts: 7 Inter-BMC: Account Number 53131 (regular Inter-BMC); 8 Intra-BMC: Account Number 53127 (regular Intra-BMC); 9 Inter-SCF: Account Numbers 53124 (regular Inter-SCF), 53609 (regular 10 inter-P&DC), 53614 (regular inter-cluster), and 53618 11 (regular inter-area); 12 Intra-SCF: 13 Account Numbers 53121 (regular intra-SCF), 53601 (regular intra-P&DC), and 53605 (regular intra-district). 14 The primary sampling unit (PSU) for all four contract types is the route- 15 trip-stop-day, which is defined as all mail unloaded from a truck at one facility on 16 a specific trip, on a specific day. The survey design is essentially the same for all 17 the contract types, though each of them has its own sampling frame. Each 18 highway sampling frame is a list of stop-days3. There are three major steps 19 involved in constructing the sampling frames. In the first step, routing and 20 operation information is extracted from the National Air and Surface System 1 Bulk Mail Center. Sectional Center Facility. 3 Abbreviated name for route-trip-stop-days 2 4 1 (NASS)4 for all the highway contract routes that are expected to be in operation 2 in the upcoming quarter. The information extracted from NASS includes the 3 route number, the trip number, the facilities where the vehicle stops, and the 4 days of a week when the trip operates. In the second step, account information 5 is extracted from the Highway Pay Master File5 for the same contract routes. 6 The account information is used to group the contracts into the four contract 7 types. In the third and final step, the ZIP Code and facility type are extracted 8 from the NASS Facility File6 for each stop on a route. The facility information is 9 used for stratifying the sampling frame, as well as for administering the survey. 10 The sample design consists of three stages. In the first stage, within each 11 contract type, the stop-days are stratified based on the facility type of the stop 12 and whether the trip is inbound or outbound. A systematic random sample of 13 stop-days is selected from each stratum. In the second stage, for each selected 14 stop-day, a subsample of wheeled containers, pallets and loose items7 off-loaded 15 at the test facility is selected. From selected containers, a third stage sample of 16 items is selected. For pallets and loose items selected at the second stage, 17 there is no third stage sample. All selected mail is recorded. 18 Weight and volume information by mail category is recorded for the 19 contents of sampled items. For sampled pallets, the dimensions of the pallet and 4 See Section III and Appendix I-1 of TRACS Highway Subsystem Statistical and Computer Documentation, filed as USPS-LR-J-32, for additional details regarding NASS. 5 See Section III and Appendix I-2 of TRACS Highway Subsystem Statistical and Computer Documentation, filed as USPS-LR-J-32, for additional details regarding Pay Master File. 6 See Section III and Appendix I-3 of TRACS Highway Subsystem Statistical and Computer Documentation, filed as USPS-LR-J-32, for additional details regarding NASS Facility File. 7 Items include pieces, parcels, bundles, sacks, trays, or tubs. Items that are not in wheeled containers or on pallets are called loose items. 5 1 the proportion of the pallet's space occupied by each mail category are recorded. 2 In order to develop estimates of cubic-foot-miles, data collectors also record the 3 facility where the item, or the pallet, was loaded onto the vehicle (to establish 4 miles traveled) and the percent of vehicle floor occupied by palletized mail, 5 containerized items, and loose items (to establish cubic-feet utilized). Data are 6 recorded directly into portable microcomputers using the Computerized On-Site 7 Data Entry System (CODES) software. From the sample data, the cubic-foot- 8 miles transported for each contract type are estimated by mail category. 9 Distribution keys are calculated by dividing the mail category cubic-foot- 10 miles by the total cubic-foot-miles. Separate distribution keys are calculated for 11 each quarter for each of the four contract types, and are used to distribute 12 quarterly costs by contract types. Annual costs, shown in Tables 1-4, are the 13 sums of the quarterly costs. The confidence intervals of annual costs, also 14 shown in Tables 1-4, are derived from the coefficients of variation (CVs) of the 15 quarterly distribution keys. 16 A more detailed description of the TRACS-Highway sample design and 17 estimation methodology is contained in Sections I-VII of Library Reference 18 USPS-LR-J-32, TRACS Highway Subsystem Statistical and Computer 19 Documentation. TRACS data collection procedures are detailed further in 20 Chapter 5 of Handbook F-65, filed as Library Reference USPS-LR-J-14, with 21 supplemental instructions in Library Reference USPS-LR-J-34, Supplemental 22 Statistical Programs Policies and Data Collection Instructions. The CODES- 6 1 TRACS software, used on laptop computers to record the data, is documented in 2 Section 1 of Library Reference USPS-LR-J-35. 3 II. FREIGHT RAIL 4 The TRACS-Rail subsystem produces distribution keys for the Inter-BMC 5 freight rail account (53143). The universe under study is all mail transported via 6 freight rail whose costs accrue to this account. The PSU for freight rail is the 7 origin-destination-day, which is defined as all mail being transported from a given 8 origin BMC to a given destination on a given day. While highway transportation 9 is contracted by route, with one route consisting of multiple trips and stops, 10 freight rail is contracted between one origin and one destination. A trip between 11 the origin and the destination facility is referred to as a rail movement. The 12 freight rail sampling frame is a list of all origin-destination-days (movements) with 13 a BMC origin which are not destined for a mail bag depository or mailer’s plant, 14 and are not used exclusively for empty equipment. The freight rail sampling 15 frame is developed using 12 weeks of historical records from the Rail 16 Management Information System (RMIS)8. The information extracted from RMIS 17 includes the origin BMC, the destination facility, the date of arrival, the number of 18 vans on the movement, and the cost of the movement. 19 The sample design consists of four stages. In the first stage, a random 20 sample of rail movements is selected from the sampling frame. In the second 21 stage, one van is randomly selected from the vans on the selected movement. In 8 See Section II-1 and Appendix I-2 of TRACS Freight Rail Subsystem Statistical and Computer Documentation, filed as USPS-LR-J-33, for additional details regarding RMIS. 7 1 the third stage, a subsample of wheeled containers, pallets and loose items off- 2 loaded from the test van is selected. From selected containers, a fourth stage 3 sample of items is selected. For pallets and loose items selected at the third 4 stage, there is no fourth stage sample. All selected mail is recorded. The freight 5 rail sample design at the third and fourth stages is the same as the highway 6 sample design at the second and third stages. 7 Weight and volume information by rate category is recorded for the 8 contents of sampled items. For sampled pallets, the dimensions of the pallet and 9 the proportion of the pallet's space occupied by each mail category are recorded. 10 Data collectors also record the percent of van floor space occupied by palletized 11 mail, containerized items, and loose items. Data are recorded directly into 12 portable microcomputers using CODES software. 13 The sample data are expanded, by mail category, to the cubic-foot-miles 14 of the test van. The cost for the trip is multiplied by the cubic-foot-mile 15 proportions to estimate mail category costs for the trip. The costs for tested trips 16 are then expanded to represent all trips in the quarter. 17 Distribution keys are calculated by dividing the expanded costs for a mail 18 category by the total expanded costs. Separate distribution keys are calculated 19 for each quarter, and are used to distribute quarterly costs. Annual costs, shown 20 in Table 5, are the sum of quarterly costs. The confidence intervals for annual 21 costs, also shown in Table 5, are derived from the CVs of the quarterly 22 distribution keys. 8 1 A more detailed description of the TRACS-Rail sample design and 2 estimation methodology is contained in Sections I-V of Library Reference USPS- 3 LR-J-33, TRACS Freight Rail Subsystem Statistical and Computer 4 Documentation. TRACS data collection procedures are detailed further in 5 Chapter 5 of Handbook F-65, filed as Library Reference USPS-LR-J-14, with 6 supplemental instructions in Library Reference USPS-LR-J-34, Supplemental 7 Statistical Programs Policies and Data Collection Instructions. The CODES- 8 TRACS software, used on laptop computers to record the data, is documented in 9 Section 1 of Library Reference USPS-LR-J-35. 10 11 12 III. PASSENGER RAIL (AMTRAK) The TRACS-Amtrak subsystem produces distribution keys for the 13 passenger rail service account, 53142. The universe under study is all mail 14 transported via Amtrak whose costs accrue to this account. In fiscal year 2000, 15 the Postal Service contracted for mail transportation on 39 Amtrak trains. Each 16 of them makes multiple trips a week along the same route from a specific origin, 17 stopping at various points en route, to a final destination. 18 The PSU is a trip, which consists of all mail unloaded from an Amtrak train 19 at all the stops along a specific trip. A trip is uniquely determined by its train 20 number and the day the train departs. It can extend over more than one 21 calendar date. The sampling frame is a list of trips. It is developed by extracting 22 the routing and operation information for all Amtrak trains in the NASS database. 23 Information extracted from NASS includes the train number, the frequency (days 9 1 of a week when the train departs), the origin, cities at which it stops, and the 2 arrival time for each stop. The 39 trains are divided into two groups (low cost 3 and high cost) based on their contract costs obtained from the Amtrak Train Cost 4 File9. 5 The sample design consists of four stages. At the first stage, trips are 6 stratified by train; one trip per quarter is selected from each low cost train and 7 two trips from each high cost train. All stops on the selected trip are sampled. At 8 the second stage, one car is randomly selected from all cars offloading mail at 9 each stop of the sampled trip. At the third stage, a subsample of wheeled 10 containers, pallets and loose items is selected from the mail off-loaded from the 11 selected car. From selected containers, a fourth stage sample of items is 12 selected. There is no fourth stage sample for pallets and loose items selected at 13 the second stage. All selected mail is recorded. The Amtrak sample design at 14 the third and fourth stages is essentially the same as the Highway sample 15 design. 16 Weight and volume information by rate category is recorded for the 17 contents of sampled items. For sampled pallets, the dimensions of the pallet and 18 the proportion of the pallet's space occupied by each mail category are recorded. 19 To permit estimation of square-foot-miles, data collectors also record the facility 20 where the item, or the pallet, was loaded onto the train (to establish the miles 21 traveled) and the total number of containers and loose items off-loaded from the 9 See Section I and Appendix I of TRACS Passenger Rail (Amtrak) Subsystem Statistical and Computer Documentation, filed as USPS-LR-J-30, for additional details regarding Amtrak Train Cost File. 10 1 entire train (to establish the square-feet utilized). Data are recorded directly into 2 portable microcomputers using CODES software. 3 The sample data are expanded, by mail category, to the square-foot-miles 4 of the sampled trip. Mail category proportions of square-foot-miles are calculated 5 for each sampled trip and weighted by the trip cost. The weighted mail category 6 proportion is multiplied by the train cost to estimate the mail category cost for the 7 train. The distribution key is calculated by dividing the sum of mail category 8 costs for the 39 trains by the total cost for the 39 trains. Separate distribution 9 keys are calculated for each quarter, and are used to distribute quarterly costs. 10 Annual costs, shown in Table 6, are the sum of quarterly costs. The confidence 11 intervals for annual costs, also shown in Table 6, are derived from the CVs of the 12 quarterly costs. 13 A more detailed description of the TRACS-Amtrak sample design and 14 estimation methodology is contained in Sections I-VII of Library Reference 15 USPS-LR-J-30, TRACS Passenger Rail (Amtrak) Subsystem Statistical and 16 Computer Documentation. TRACS data collection procedures are detailed 17 further in Chapter 5 of Handbook F-65, filed as Library Reference USPS-LR-J- 18 14, with supplemental instructions in Library Reference USPS-LR-J-34, 19 Supplemental Statistical Programs Policies and Data Collection Instructions. The 20 CODES-TRACS software, used on laptop computers to record the data, is 21 documented in Section 1 of Library Reference USPS-LR-J-35. 22 23 Once a year, TRACS samples mail transported on Amtrak-Roadrailer. A distribution key is developed to allocate Amtrak-Roadrailer costs. In BY00, the 11 1 Roadrailer sample was conducted during the period of June 17 – July 7. Each 2 Roadrailer route was treated as a regular train. Every trip was treated as a PSU. 3 Four tests were conducted for each Roadrailer. To the extent possible, the tests 4 were taken on different days of the week to help ensure a representative mix 5 across days. At all stops of each trip, data were collected from unloaded mail 6 using normal Amtrak test procedures. Data were recorded using the CODES 7 software for Amtrak tests and transmitted to the mainframe computer along with 8 Amtrak test data. The Amtrak expansion procedure was used in the Roadrailer 9 expansion process. Each Roadrailer was treated as if it was a train and the four 10 tested trips were treated as PSU’s. A distribution key was calculated using the 11 expanded Roadrailer sample, and was used to distribute the BY00 Roadrailer 12 costs. Results are shown in Table 7. 13 A more detailed description of the Roadrailer sample design and 14 estimation methodology for the BY00 study is provided in USPS-LR-I- 15 433/R2000-1. The expansion programs, inputs to the expansion programs and 16 SAS logs used to generate the distribution key are contained in Appendix V: Lists 17 of Source Code and Data on CD-ROM, of USPS-LR-J-30. 18 IV. 19 COMMERCIAL AIR The TRACS-Air subsystem produces distribution keys for commercial air 20 transportation costs. The universe under study is all mail transported under 21 purchased transportation contracts on passenger airlines from a domestic origin 22 to a domestic destination. It does not include mail traveling via air taxi or the 23 Eagle, Western or Christmas Networks. The PSU is a flight-day, and is defined 12 1 as all mail being dispatched from the specified origin on a given day via a 2 particular airline and flight with the same first-leg destination reflected on the 3 routing label. The sampling frame is constructed by extracting the recent 4 dispatch records from the Air Contract Support System (ACSS)10. ACSS 5 maintains the routing information (carrier, origin, destination, and date of the 6 flight) about an individual dispatch, and specifies the gross weight and primary 7 mail class for all items in the dispatch. Flights whose schedules continue through 8 the upcoming postal quarter according to the Official Airline Guide (OAG) are 9 eligible for sampling. 10 The sample design consists of two stages. In the first stage, a random 11 sample of flight-days is selected from the sampling frame. In the second stage, 12 for each selected flight-day, a subsample of mail items dispatched for that flight is 13 selected for detailed sampling. 14 Dispatch information is recorded for each selected item. Weight and 15 volume information, by mail category, is then recorded for the contents of the 16 item. The dispatch information is used in the expansion process to link the 17 sample data with dispatch records in the Plan vs. Actual (PVA) file11. Similar to 18 the ACSS, but at a less aggregated mail class level, the PVA file maintains 19 individual dispatch information for all items transported by air during the entire 20 quarter. Data are recorded directly into a portable microcomputer using CODES 21 software. 10 See Section III and Appendix I-B of TRACS Commercial Air Subsystem Statistical and Computer Documentation, filed as USPS-LR-J-29, for additional details regarding ACSS file. 11 See Section III and Appendix I-K of TRACS Commercial Air Subsystem Statistical and Computer Documentation, filed as USPS-LR-J-29, for additional details regarding PVA file. 13 1 The sample data are expanded, by rate category and by primary mail 2 class, to the pound-miles of mail on the test flight and then to the total pound- 3 miles of mail for the quarter. PVA records are used to determine the pound-miles 4 of mail for the test flight, as well as the total pound-miles for the quarter for each 5 primary mail class. The expanded pound-miles for a mail category are obtained 6 by adding fully expanded pound-miles across all primary mail classes. 7 Distribution keys are calculated by dividing the expanded pound-miles for 8 a mail category by the total expanded pound-miles. Separate distribution keys 9 are calculated for each quarter, and are used to distribute quarterly costs. 10 Annual costs, shown in Table 8, are the sum of the quarterly costs. The 11 confidence intervals for annual costs, also shown in Table 8, are derived from the 12 CVs of the quarterly costs. 13 A more detailed description of the TRACS-Air sample design and 14 estimation methodology is contained in Sections I-VII of Library Reference 15 USPS-LR-J-29, TRACS Commercial Air Subsystem Statistical and Computer 16 Documentation. TRACS data collection procedures are detailed further in 17 Chapter 5 of Handbook F-65, filed as Library Reference USPS-LR-J-14, with 18 supplemental instructions in Library Reference USPS-LR-J-34, Supplemental 19 Statistical Programs Policies and Data Collection Instructions. The CODES- 20 TRACS software, used on laptop computers to record the data, is documented in 21 Section 1 of Library Reference USPS-LR-J-35. 22 14 1 V. 2 NETWORK AIR The TRACS-Network Air subsystem produces two sets of distribution 3 keys, one for the Eagle Network and one for the Western Network. The universe 4 under study is all mail transported on the Eagle and Western Networks whose 5 costs accrue to the following accounts: 6 53541: Eagle Network Line Haul. 7 53543: Eagle Network Terminal Handling. 8 53545: Western Network Line Haul. 9 53546: Western Network Terminal Handling. 10 53547: Eagle Network Fuel. 11 It does not include mail transported on passenger airlines, day net, air taxi 12 or the Christmas Networks. Unlike commercial airline flights, network flights are 13 dedicated fully to transporting mail between the hub and one or more cities in the 14 network. The hub for the Eagle Network is Indianapolis, Indiana; for the Western 15 Network, it is Oakland, California. The sample design for each network is the 16 same. 17 The PSU is a city-day, which consists of all mail dispatched via network 18 flights from that city to the hub (as the first leg flight) on the specified day. The 19 sampling frame is a list of such city-days, and is constructed by extracting the 20 network flight data from the NASS database. For each network city, NASS 21 specifies the flight number, hub destination, flight frequency (days of a week 22 when the flight runs), and the closeout time. Each city is sampled three times per 23 quarter. 15 1 The sample design consists of two stages. In the first stage, for each city 2 in the network, three days are randomly selected for sampling. In the second 3 stage, a subsample of mail items dispatched via the network flight to the hub is 4 selected for detailed sampling. 5 Dispatch information is recorded for each selected item. Weight and 6 volume information, by rate category, are then recorded for the contents of the 7 item. The dispatch information is used in the expansion process to link the 8 sample data with dispatch records in the PVA file. Data are recorded directly into 9 a portable microcomputer using CODES software. 10 The sample data are expanded, by rate category and by primary mail 11 class, to the pound-miles of mail on the test flight and then to the total pound- 12 miles of mail transported on the network during the quarter. PVA records are 13 used to determine the pound-miles of mail for the test flight, as well as the total 14 pound-miles for the quarter for each primary mail class. The expanded pound- 15 miles for a mail category are obtained by adding fully expanded pound-miles 16 across all primary mail classes. 17 Distribution keys are calculated by dividing the expanded pound-miles for 18 a mail category by the total expanded pound-miles. Separate distribution keys 19 are calculated for each network for each quarter, and are used to distribute 20 quarterly non-premium costs. Annual costs, shown in Tables 9-10, are the sum 21 of the quarterly costs. The confidence intervals for annual costs, also shown in 22 Tables 8-9, are derived from the CVs of the quarterly costs. 16 1 A more detailed description of the TRACS-Network Air sample design and 2 estimation methodology is contained in Sections I-VII of Library Reference 3 USPS-LR-J-31, TRACS Network Air Subsystem Statistical and Computer 4 Documentation. TRACS data collection procedures are detailed further in 5 Chapter 5 of Handbook F-65, filed as Library Reference USPS-LR-J-14, with 6 supplemental instructions in Library Reference USPS-LR-J-34, Supplemental 7 Statistical Programs Policies and Data Collection Instructions. The CODES- 8 TRACS software, used on laptop computers to record the data, is documented in 9 Section 1 of Library Reference USPS-LR-J-35. 17 APPENDIX Table 1. BY00 Inter-BMC Highway Costs and Confidence Intervals Table 2. BY00 Intra-BMC Highway Costs and Confidence Intervals Table 3. BY00 Inter-SCF Highway Costs and Confidence Intervals Table 4. BY00 Intra-SCF Highway Costs and Confidence Intervals Table 5. BY00 Freight Rail Costs and Confidence Intervals Table 6. BY00 Passenger Rail (Amtrak) Costs and Confidence Intervals Table 7. BY00 Amtrak - Roadrailer Distribution Key and Costs Table 8. BY00 Commercial Air Costs and Confidence Intervals Table 9. BY00 Eagle Network Costs and Confidence Intervals Table 10. BY00 Western Network Costs and Confidence Intervals 18 Table 1. BY00 Inter-BMC Highway Costs and Confidence Intervals Mail Category 1C Single-Piece Letters 1C Presort Letters 1C Single-Piece Cards 1C Presort Cards Priority Mail Express Mail Periodicals Standard Mail ECR Standard Mail Regular Parcel Post Bound Printed Matter Media Mail US Postal Service Free Mail International Mail Total CV 0.129 0.159 0.370 0.491 0.132 0.342 0.054 0.172 0.101 0.055 0.081 0.069 0.390 0.433 0.239 Lower 95% C.L. ($1,000) 8,165 5,291 24 8 6,203 45 34,873 4,422 69,309 55,130 14,008 20,572 183 105 1,965 Upper Cost 95% C.L. ($1,000) ($1,000) 10,929 13,694 7,682 10,072 88 151 229 449 8,375 10,547 135 226 38,989 43,104 6,661 8,900 86,486 103,663 61,851 68,572 16,664 19,319 23,802 27,033 775 1,366 696 1,287 3,700 5,434 267,060 19 Table 2. BY00 Intra-BMC Highway Costs and Confidence Intervals Mail Category 1C Single-Piece Letters 1C Presort Letters 1C Single-Piece Cards 1C Presort Cards Priority Mail Express Mail Periodicals Standard Mail ECR Standard Mail Regular Parcel Post Bound Printed Matter Media Mail US Postal Service Free Mail International Mail Total CV 0.097 0.133 0.268 0.274 0.107 0.282 0.076 0.190 0.117 0.050 0.102 0.090 0.415 0.335 0.310 Lower 95% C.L. ($1,000) 12,548 7,364 69 32 16,046 378 20,881 6,789 45,651 85,511 19,089 13,826 44 87 1,065 Cost ($1,000) 15,506 9,972 145 69 20,306 846 24,546 10,816 59,215 94,753 23,869 16,792 234 254 2,714 280,037 Upper 95% C.L. ($1,000) 18,464 12,581 221 106 24,567 1,314 28,210 14,844 72,779 103,995 28,649 19,758 423 421 4,363 20 Table 3. BY00 Inter-SCF Highway Costs and Confidence Intervals Mail Category 1C Single-Piece Letters 1C Presort Letters 1C Single-Piece Cards 1C Presort Cards Priority Mail Express Mail Periodicals Standard Mail ECR Standard Mail Regular Parcel Post Bound Printed Matter Media Mail US Postal Service Free Mail International Mail Total CV 0.055 0.158 0.205 0.316 0.081 0.220 0.129 0.339 0.211 0.162 0.193 0.251 0.611 0.343 0.457 Lower 95% C.L. ($1,000) 136,904 44,430 1,308 689 97,320 3,477 37,848 996 22,171 12,239 2,495 3,334 344 849 Cost ($1,000) 153,508 64,385 2,187 1,804 115,561 6,117 50,600 2,968 37,771 17,929 4,019 6,566 703 1,050 8,159 473,327 Upper 95% C.L. ($1,000) 170,112 84,340 3,066 2,920 133,801 8,756 63,352 4,939 53,371 23,620 5,542 9,798 1,546 1,756 15,469 21 Table 4. BY00 Intra-SCF Highway Costs and Confidence Intervals Mail Category 1C Single-Piece Letters 1C Presort Letters 1C Single-Piece Cards 1C Presort Cards Priority Mail Express Mail Periodicals Standard Mail ECR Standard Mail Regular Parcel Post Bound Printed Matter Media Mail US Postal Service Free Mail International Mail Total CV 0.046 0.111 0.175 0.210 0.063 0.253 0.081 0.232 0.133 0.097 0.136 0.153 0.284 0.256 0.314 Lower 95% C.L. ($1,000) 104,087 31,812 1,057 417 126,776 4,567 57,359 12,642 68,309 46,786 10,048 5,454 445 501 1,703 Cost ($1,000) 114,480 40,687 1,607 707 144,506 9,057 68,182 23,222 92,308 57,794 13,688 7,801 1,001 1,007 4,433 580,483 Upper 95% C.L. ($1,000) 124,872 49,561 2,158 998 162,237 13,548 79,005 33,802 116,307 68,803 17,329 10,148 1,558 1,512 7,164 22 Table 5. BY00 Freight Rail Costs and Confidence Intervals Mail Category 1C Single-Piece Letters 1C Presort Letters 1C Single-Piece Cards 1C Presort Cards Priority Mail Express Mail Periodicals Standard Mail ECR Standard Mail Regular Parcel Post Bound Printed Matter Media Mail US Postal Service Free Mail International Mail Total CV 18.469 10.791 311.531 809.714 20.369 284.422 0.182 0.124 0.010 0.078 0.124 0.091 28.556 81.693 0.793 Lower 95% C.L. ($1,000) 8,328 5,577 58,664 19,854 6,363 9,825 - Cost ($1,000) 468 570 23 8 620 48 12,939 7,360 59,857 23,450 8,416 11,961 291 135 3,944 130,089 Upper 95% C.L. ($1,000) 17,424 12,634 14,169 12,740 25,372 26,534 17,550 9,142 61,049 27,047 10,469 14,097 16,598 21,677 10,070 23 Table 6. BY00 Passenger Rail (Amtrak) Costs and Confidence Intervals Mail Category 1C Single-Piece Letters 1C Presort Letters 1C Single-Piece Cards 1C Presort Cards Priority Mail Express Mail Periodicals Standard Mail ECR Standard Mail Regular Parcel Post Bound Printed Matter Media Mail US Postal Service Free Mail International Mail Total CV 0.335 0.377 0.360 0.971 0.230 0.000 0.043 0.617 0.153 0.384 0.091 0.751 2.375 0.179 0.621 Lower 95% C.L. ($1,000) 1,044 1,745 8 1,220 72,306 1,179 199 24 256 - Cost ($1,000) 3,031 6,662 29 231 2,224 78,931 75 1,685 804 30 142 603 394 406 95,246 Upper 95% C.L. ($1,000) 5,019 11,580 49 670 3,229 85,556 165 2,191 1,409 35 350 3,409 533 899 24 Table 7. BY00 Amtrak - Roadrailer Distribution Key and Costs Mail Category 1C Single-Piece Letters 1C Presort Letters 1C Single-Piece Cards 1C Presort Cards Priority Mail Express Mail Periodicals Standard Mail ECR Standard Mail Regular Parcel Post Bound Printed Matter Media Mail US Postal Service Free Mail International Mail Total Distribution Key .2832 .2913 .0109 .0025 .0152 .3383 .0002 .0189 .0048 .0047 .0166 .0111 .0016 .0006 1.0000 Cost ($1,000) 1,507 1,550 58 13 81 1,800 1 100 26 25 88 59 8 3 5,321 25 Table 8. BY00 Commercial Air Costs and Confidence Intervals Mail Category 1C Single-Piece Letters 1C Presort Letters 1C Single-Piece Cards 1C Presort Cards Priority Mail Express Mail Periodicals Standard Mail ECR Standard Mail Regular Parcel Post Bound Printed Matter Media Mail US Postal Service Free Mail International Mail Total CV 0.102 0.122 0.335 0.354 0.140 0.223 0.222 0.399 0.202 0.789 0.424 0.266 0.473 0.639 0.232 Lower 95% C.L. ($1,000) 166,019 133,272 1,849 540 229,434 5,985 8,549 54 11,034 364 757 83 10,984 Upper Cost 95% C.L. ($1,000) ($1,000) 207,567 249,114 175,228 217,183 5,385 8,921 1,761 2,982 315,962 402,489 10,627 15,269 15,154 21,759 247 441 18,275 25,517 2,274 5,788 2,149 3,934 1,584 2,410 1,151 2,219 902 2,032 20,165 29,347 778,430 26 Table 9. BY00 Eagle Network Costs and Confidence Intervals Mail Category 1C Single-Piece Letters 1C Presort Letters 1C Single-Piece Cards 1C Presort Cards Priority Mail Express Mail Periodicals Standard Mail ECR Standard Mail Regular Parcel Post Bound Printed Matter Media Mail US Postal Service Free Mail International Mail Total CV 0.118 0.121 0.277 0.295 0.064 0.056 0.206 0.827 0.264 0.835 0.703 0.376 0.435 0.517 0.187 Lower 95% C.L. ($1,000) 6,996 5,980 44 26 22,460 13,961 167 354 15 92 3,692 Cost ($1,000) 9,104 7,832 96 62 25,659 15,674 280 11 733 47 50 56 628 45 5,821 66,098 Upper 95% C.L. ($1,000) 11,212 9,683 148 98 28,857 17,386 393 30 1,112 124 119 98 1,164 91 7,949 27 Table 10. BY00 Western Network Costs and Confidence Intervals Mail Category 1C Single-Piece Letters 1C Presort Letters 1C Single-Piece Cards 1C Presort Cards Priority Mail Express Mail Periodicals Standard Mail ECR Standard Mail Regular Parcel Post Bound Printed Matter Media Mail US Postal Service Free Mail International Mail Total CV 0.319 0.165 0.354 0.910 0.087 0.109 0.443 0.946 0.490 1.000 1.000 1.000 0.738 0.000 0.342 Lower 95% C.L. ($1,000) 241 1,278 6 4,821 877 14 12 184 Cost ($1,000) 641 1,890 19 17 5,813 1,114 103 5 288 17 1 2 5 558 10,475 Upper 95% C.L. ($1,000) 1,041 2,503 32 48 6,806 1,352 192 14 564 51 3 7 13 932
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